03 December 2021

Do you control your land? Who controls the land around you? Who owns Scotland?

The answers to these questions are, historically, difficult to ascertain due to Scotland’s system of land registration. The Registers of Scotland’s new project, The Register of Persons Holding a Controlled Interest in Land (“RCI”), will be introduced on 1 April 2022 with the primary aim of tackling this historical issue.

Scotland has the oldest national land registration in the world and although impressive, this has created problems in the modern era. The original Land Register dates back 500 years and contains handwritten records relating to land within Scotland. Obviously, this poses problems from the illegible 1800’s language, to the astonishing failure to use maps. Furthermore, problems arise when land or homes are left derelict, leaving the owners of such unknown. Vacant homes and derelict land throughout Scotland equate to an area more than twice the size of Dundee. For this reason, there is an urgent need to create a system which tells us with certainty, who owns Scotland.

What is the purpose of the register?

The RCI will create a register which will determine who owns and controls an area of land. All land in Scotland has an owner and/or controlling party from the beaches we frequent, the lochs we swim in to the castles we went to as children. These owners range from private landowners, public land ownership and unknown individuals. This new register aims to tackle, specifically, the issue of unknown landowners. Land which does not have a known owner cannot be developed or renewed, therefore, the introduction of the RCI will identify an owner and eradicate unwanted derelict land.

The overarching purpose of this register is to increase public transparency in relation to individuals who own or have control over decision-making in relation to land.

What information will the register include?

• The title number of the land or, where such land is not registered, the address and description of the property;
• The details of the “recorded person” (owner or tenant with controlling interest), including their name, address, registered number (if applicable) and the capacity in which they own or lease the land; and
• The details of the “associate” (the person who has significant control in the owner or tenant), including their name, address and contact details.

Who is affected?

From 1 April 2022, it will be a requirement for owners to register interest in their land and tenants to register interest in any long lease for any property registered in the Land or Sasines Registers. This information will then be held on the RCI.

The duty to disclose information for the RCI will apply to a range of landowners and tenants. A recorded person may be an individual, trust, company or overseas entity.

Are there any exceptions?

The main exception to the RCI regulations is to avoid any unnecessary duplication of disclosures. The RCI does not apply where information about who has significant control over the owner or registered tenant is publicly transparent elsewhere. This means that some UK companies, certain charities, public authorities and limited liability partnerships do not have to provide information to RCI, unless of course there is a separate contractual or other arrangement in place giving another party significant influence or control over the land in question.

Consequences of non-compliance?

Failure to comply with the duty to disclose information, or to provide false or misleading information, will be a criminal offence, punishable with a fine of up to £5,000. Recorded persons will benefit from an initial grace period of 12 months, where the offences will not apply, in order to allow reasonable time to make their applications to the RCI.

If you have any questions about the new RCI regulations, please contact BTO’s Real Estate Team.

Nicolas McBride, Partner: nmb@bto.co.uk / 0141 221 8012
Emelia Conner, Trainee Solicitor
Regan Wallace, Trainee Solicitor